Ledger Explains Reasons Behind Hardware Wallet Attack

Ledger has commented on the large-scale cyberattack on its hardware wallets, which resulted in users losing their funds. The criminal group operated covertly for several months.

The attack method was complex and required significant financial investment. Fraudsters bought original devices, opened their casings, and installed hidden components to intercept seed phrases.

After modification, the compromised wallets were put back into circulation through a network of resellers in Southeast Asia. The attackers created a special infrastructure for data collection, enabling them to carry out a coordinated cryptocurrency theft operation.

Developers emphasize that the devices themselves and the company's security systems did not contain vulnerabilities. The incident was the result of physical interference by third parties, not a software failure.

To prevent further thefts, the company took emergency measures. Sales in Southeast Asia and Hong Kong were suspended, and resellers are forbidden from displaying products on shelves.

Devices must now be stored separately from their packaging and handed over to customers directly at the time of payment. This eliminates the possibility of product substitution before the customer makes a purchase.